Louisiana Solar Tax Credit

13 Dec 2023
3 min
Beginner

Andrey GorichenskiAuthor

Explore the simplicity of going solar in Louisiana with the assistance of the Solar Investment Tax Credit. Curious about the process? Here's a straightforward guide on securing the Solar Tax Credit in Louisiana.

What is the Solar Tax Credit?

The Solar Investment Tax Credit (ITC) gives businesses and homeowners a tax credit equal to 30% of the total cost of a solar panel system, directly reducing the income tax owed. Since its inception in 2006, the ITC has been extended multiple times. Currently, the Solar Tax Credit is available to those installing solar panels by December 31, 2034, gradually decreasing to 26% in 2033 and further to 22% at the beginning of 2034.

How does the Solar Tax Credit work?

The tax credit directly lessens the amount of income tax owed to the federal government. For example, with a $10,000 solar system and a 30% ITC, you get a $3,000 tax credit, subtracting this amount from your total income tax liability. If the tax credit exceeds your tax owed for the year, any extra credit can often be carried over to the next year, ensuring you receive the full benefit.

How do I get a solar tax credit in Louisiana?

After installing your solar system, keep detailed records of all expenses. Complete IRS Form 5695, add your home energy credit details to Schedule 3 (Form 1040) and include it with your federal income tax return. Make sure to meet the deadline when filing taxes.

Need help? Follow our guide!

We cover filling out the forms for claiming ITC step by step

Step-by-step guide

Benefits of the Solar Tax Credit in Louisiana

The Solar Tax Credit significantly lowers the cost of a solar installation, covering not just solar panels but also all equipment, shipping, and labor expenses. There's no limit to how much you can claim, at least for homeowners.

Beyond the federal solar tax credit, Louisiana provides state-level incentives and rebates for solar installations, making it even more affordable to set up a solar energy system. Learn more in our article about Louisiana solar incentives.

Andrey Gorichenski

Senior Editor

Andrey had been a news editor and freelance writer for a number of medias before joining A1SolarStore team. Climate change and its impact on people's lives has always been among his interests and it partially explains his degree in Philosophy and Ethics.